- Banks can now pause suspicious transactions for up to 72 hours.
- The new law aims to protect vulnerable people from rising fraud.
Britain has stepped up efforts to stop the rising fraud cases by proposing new legislation that will give banks more authority to delay suspicious transactions. The move aims to prevent scams that cost victims hundreds of millions of pounds each year, particularly targeting vulnerable communities.
The proposed laws, introduced by the UK finance ministry, will allow banks to pause payments for up to 72 hours if they suspect fraud, Reuters reported. Under current rules, banks are required to process or reject payment by the end of the next business day, offering limited time to investigate suspicious activity.
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Tackling Scams
The UK finance ministry highlighted the rise of so-called “romance scams,” a tactic in which fraudsters fake romantic relationships to convince victims to part with their money, as a key area of concern. This kind of fraud, which often targets vulnerable people, has reportedly contributed significantly to the overall increase in financial crime.
The new measures are a response to fraudsters’ growing sophistication. With scammers targeting people through various tactics, the government aims to give financial institutions the necessary tools to disrupt these criminal activities. The proposed 72-hour delay is seen as a critical window for banks to contact customers, verify transactions, and prevent funds from being transferred to fraudsters.
Experts believe that these new measures will require close collaboration between banks, customers, and law enforcement to be effective. The ability to hold transactions for a longer period allows banks to coordinate efforts to prevent fraudulent activities while also raising customer awareness about the risks they face.
Ultimately, the UK’s enhanced powers for banks represent a significant effort to curb financial crime and protect individuals at risk. By extending the time to investigate suspicious payments, the government aims to curb growing fraud and protect victims from financial losses.
